The Chhattisgarh Mineral Development Corporation (CMDC) would request the Ministry of Coal to reconsider its decision of de-allocating the coal block that was allotted to the state-run mining company. Ministry of Coal vide its letter dated November 30, 2012 has de allocated the Shankarpur (Bhatgaon-II) and Extension allocated to the CMDC and forfeited 50 per cent of the bank guarantee related to the development of coal block. The alleged unsatisfactory progress in Forest and Environment clearances and discrepancies in reported investments submitted to the coal controller and Inter ministerial group (IMG) were cited as the reasons for the action. “We shall represent the Ministry of Coal with all facts at the earliest with a request to reconsider the decision and, if required, CMDC shall also approach the court of law to meet the end of justice,” Managing Director of CMDC Prem Kumar said in a statement issued here. The state government had given overt signal that it would drag the issue in the court of law to challenge the Government of India order.

The statement read that the said de-allocation order has been issued by the ministry without giving careful and logical consideration to the facts related to the case. The coal block was allotted to the CMDC by the Ministry of coal on July 25, 2007 and as per implementation schedule provided with the allocation order, time frame fixed for starting up production through underground mining was 54 month.

Kumar said it took time to complete all the required formalities and clearances but the time taken was reasonable. Mentioning of discrepancies in investment figures between the reports submitted to the Coal controller and to the Inter Ministerial Group (IMG) and making it a base for de allocation is not comprehendible, he added.

In fact both the reports are true and they bear different context, Kumar said adding that making reports related to land acquisition a basis of de-allocation was also not justifiable as in none of the reports submitted to the ministry it has been reported that the land acquisition is complete.